How to Pay for College and Still Have Money in Your

PocketsPresented by: Anna Maria Vaccaro Guidance DirectorImmaculate Conception Academy

Sources of Financial Aid

Federal Government (FAFSA form)

State Government (Cal Grant )

Institution (University/Colleges)

Work Study Private companies,

foundations or individuals (SCHOLARSHIPS)

Various Investments

Higher Education Tax Incentives

Hope Scholarship Credit– 100 percent of the 1st $1,000 of the taxpayer’s out

of pocket expenses for tuition – 50 percent of the next $1,000 of the taxpayer’s

qualified expenses for EACH student– Maximum amount is $1,500 per eligible student– Student or Parent can claim for the Hope Credit– Only for first or second year in college

There’s more…..

Lifetime Learning Credit– Obtain a credit towards

federal taxes that is equal to 20 percent of the taxpayer’s first $10,000 of out of pocket qualified expenses.

– Calculation is per family NOT per student

– No limit on years of education

Can I save in other ways?

YES!!!!!!!!

Deduction for Higher Education Expenses

1. Taxpayers can claim both this deduction and a Hope or Lifetime Credit for educational expenses in the same year

How can I save?

Qualified Tuition Program Also Called 529 Plans Scholarshare www.scholarshare.com $15.00 minimum contribution per pay

period Maximum account contribution limits

Gift Aid

Grants (a.k.a. Free Money)

– Federal (Pell Grant)– State (Cal Grant)– Institutional (school)– Private

Scholarships– Institutional– Private

Types of Grants

Pell Grant*– Must demonstrate exceptional need

Federal Supplemental Educational Opportunity Grant (FSEOG)*– Priority given to students with exceptional

financial need and are Pell Grant recipients– Funding varies with each school

– *Need to fill out FAFSA Form

Show me more grants……

University Grants– California State University– University of California

Cal Grant A

3.0 GPA (10th & 11th grade)

Meets Income and asset limits

Assists with tuition for UC’s, CSU’s and independent four year private colleges in CA

Cal Grant B & C

Cal Grant B– 2.0 GPA (10th and 11th

grade)– Low income families

Receive same funding as Cal Grant A except for first year. However, you receive an additional living expense

Cal Grant C (technical/vocational school)

– Verified GPA – Contributes towards tuition

expenses

Cal Grant Contact Numbers

Student Help Line 888-CA GRANT

www.calgrants.org www.csac.ca.gov www.chafee.csac.ca.gov custsvcs@csac.ca.govEdFund 877.EDFUND or

www.edfund.org

Scholarships – “Show me the money!”

Millions of scholarship dollars are available

How to find them:– www.fastweb.com– Guidance Office room 109– University/College: UC’s,

CSU’s, Privates– Unions/Employers

Different Types of Scholarships

Seniors– Elks Scholarship – Gates Millennium – www.gmsp.org– McDonald’s – PG&E Scholarship– UC Scholarships – Cal Opportunity

Scholarship– Toyota Scholarship– Burger King Scholars

Juniors– Discover Card – Comcast

Scholarships for ALL students:

– Duck Tape Scholarship– Kaptest.com/essay– Dale E. Fridell Scholarship– GM Scholarship– & many more…….

Where do we go from here?

The steps to obtaining financial aid:1. Fill out the FAFSA (Free Application

Federal Student Aid) Form between January 1st to March 2nd. Best before Feb.

2. Check to see if you need the CSS Profile3. Apply, apply, apply, apply for scholarships

through colleges, FastWeb and other resources

Let’s understand EFC

EFC (Estimated Family Contribution)

(A) Cost of Attendance

(B) Family Contribution (less)

(C) Grants + Scholarships (less)

(D) ------------------------------

(E) =Student Responsibility

(B) Expected Family Contribution

Generally speaking, students under the age of 24 are considered dependent students, so their parent information is considered when calculating financial aid eligibility.

For many low-income families, the family contribution is zero

Family Contribution can be paid from savings, current income or loans

Here comes the scary part:

Filling out the financial aid forms

FAFSA GPA Verification Form CSS Profile Scholarship

Applications

Make sure you have the following:

FAFSA Form CSS Profile GPA Verification

permission slip Tax Forms Pay Stubs Accounts/Assets

How to Apply

FAFSA: collects data to calculate eligibility for need-based financial aid (completed by student/family)

GPA VERIFICATION FORM: Collects GPA information used to make Cal Grant awards (completed by school)

CSS PROFILE: collects data to calculate institutional formula for aid

FAFSA

Paper Application

OR

ONLINE @

www.fafsa.ed.gov

Self-Help Aid

Loans Employment

Subsidized Stafford Federal

Unsubsidized Stafford Institutional

PLUS

Federal Perkins

Private (Alternative)

Stafford Loan

Subsidized Stafford must show “need” Unsubsidized Stafford “need” is not a

consideration Interest Rates – variable Fees

PLUS Loan

Parent borrows for dependent undergraduate Approval subject to credit check Interest rate variable Repayment begins 60 days Loan limits

– Annual: COA less other aid– Aggregate: none

Federal Perkins Loans

Priority given to those with exceptional need

Eligibility for Federal Pell Grant

Annual and aggregate loan limits

Fixed interest rate

9 month grace period

Repayment 10 year maximum

Deferment and cancellation provisions

Private Loans

Also known as Alternative Loans

Not made under the Title IV regulations

Lender assumes the risk of default

Credit based and may require a co-signer

Interest and fees may be higher than a Stafford loan

Work Study

Funded by federal government or institution

Undergraduates and graduates Job not guaranteed Money must be earned Can be either on or off campus Funding levels vary at each

institution

Special Circumstances

Adjustments may be made to information on a case-by-case basis such as….

– Dependency status– Income and assets– Child Support– Number in household or college– Medial or dental expenses– Private elementary/secondary

institution

Think College NOW!!!!

Where to plan out and prepare:

www.csumentor.edu

www.universityofcalifornia.edu

www.californiacolleges.edu

Resources

Financial Aid Information Pagewww.finaid.org

College Board (SAT)www.collegeboard.org

ACT www.actstudent.org

On-Site Student Centerswww.mapping-your-future.orgwww.princetonreview.org

Finding Scholarships

Petersons– www.petersons.com

Fastweb– www.fastweb.com

Mach25– www.mach25.com

SallieMae College Answer– www.collegeanswer.com

Selected Scholarships

MALDEF– www.maldef.org

NAACP– www.uncf.org

Native American– www.doi.gov

Asian American– www.uspaacc.com

Hard Work = Money

10 hours prep time to get a $500 scholarship comes out to $50 an hour

Petersons says there are 1.6 million scholarships

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